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Executive
Summary -
First Quarter 2008
The attached report highlights the Corporation's financial activities
and results for the period ending March 31, 2008.
- The Deposit
Insurance Fund (DIF) balance grew by one percent ($430 million) to
$52.843 billion during the first quarter of 2008, a
decrease of 26 percent compared to a year ago. Although two banks
failed during the quarter, their resolution had a nominal effect on
the DIF’s
comprehensive income.
- On January
25, 2008, the Office of the Comptroller of the Currency closed
Douglass National Bank of Kansas
City, Missouri,
and named the FDIC as receiver. Liberty Bank and Trust of New
Orleans, Louisiana, assumed all of the deposits and purchased
most of the
assets of the failed bank. DIF recorded a $50 million receivable
from the receivership for the payments made by DIF to cover obligations
to insured depositors. In addition, an allowance for loss of
$6 million was recorded against the resolution receivable.
On March 7, 2008, the Commissioner of Missouri’s Division of Finance
closed Hume Bank of Hume, Missouri, and named the FDIC as receiver. Security
Bank of Rich Hill, Missouri, assumed the failed bank’s insured deposits
and purchased approximately $3 million in assets. The FDIC recorded
a $14 million receivable from the receivership for the payments made by
DIF to
cover obligations to insured depositors. In addition, DIF recorded
an allowance for loss of $3 million against the resolution receivable.
- For the
three months ending March 31, 2008, Corporate Operating and
Investment Budget related expenditures ran below budget by 12 percent
and 16 percent, respectively. The variance with respect to the
Corporate Operating Budget expenditures was primarily the result
of lower spending
for contractual services in both the Ongoing Operations and Receivership
Funding components of the budget during the quarter. Detailed
quarterly reports are provided separately to the Board by the
Capital
Investment
Review Committee for those information technology projects that
are included in the Investment Budget.
On
the pages following is an assessment of each of the three major finance
areas:
financial statements, investments, and budget.
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